Author Archives: Peggy Nightingale

Changes to Holiday Pay and Other Payroll Administration Matters

We are pleased to advise that the Government has announced changes to Holiday Pay, Working Time Regulations and TUPE (Transfer of Undertakings Protection of Employment) Rights.

For once, the changes can be regarded as beneficial for small and medium size businesses.

The calculation of Holiday Pay for part-year workers and those who have irregular hours can be calculated at 12.07% of hours worked each pay period and paying this each pay period (… Holiday Pay) will be allowed, simplifying the process.

Holiday Pay must be based on their normal pay and should include commission, overtime, on-call and other regular payments.

The changes to Working Time Regulations reduce the onerous detail of keeping records of all employees’ hours of work.

The simplification of TUPE Regulation will allow employers undertaking some small transfers to consult directly with staff involved.

As regulations relating to payroll have been getting ever more complicated over the past few years, these developments are to be welcome.

There is no need to make any changes yet but these draft regulations are expected to come into effect on 1^st January 2024 and Holiday Pay provisions will apply to holiday years commencing on or after 1 April 2024.

Business Confidence Survey – Your expectations for the next 12 months

We are conducting a short survey to understand how businesses are coping in the current climate, including their outlook for the future.

We conduct this business confidence survey from time to time to understand confidence levels and the views of businesses on their outlook. The findings provide us with insights to develop appropriate support for businesses and individuals.

We share these insights with the government and other industry bodies to ensure the right conversations are taking place and measures being developed to support business in the longer-term.

 
We are conducting this survey in collaboration with other members firms of the UK200Group, the UK’s leading professional organisation of chartered accountants and law firms., of which we are a member.

This means we will capture feedback from businesses from right across the UK which we can use to help develop and shape support to help businesses like yours.

The survey will only take 1-2 minutes of your time to participate. It contains just 4 short questions.

Please take a moment to participate:

https://survey.zohopublic.eu/zs/YYDHjl

Companies House Changes

A lot changes are planned for companies and other entities which file documents with Companies House.

Amongst these changes are the following, which will impact on us all:

• Every company will have to file its profit and loss account, which means this detail will be on the public record.

• It will become much more difficult to manipulate dates with Companies House to gain more time to file accounts.

• Photographic identity documents will need to be provided when forming companies. This will in due course apply to all companies and individuals already on the Companies Register.

In order to notify our clients well in advance, we have created A Guide to the Companies House Reforms.

The UK Companies House reforms are set to make significant changes in the way businesses operate, with increased transparency and more stringent measures to combat financial crime, including the proposed requirement for all companies, including small companies, to file a profit and loss.
These reforms will affect all limited companies, particularly small businesses, making it crucial for you to understand the implications and adapt accordingly.

What’s inside the guide?

Our comprehensive guide covers everything you need to know about the Companies House reforms, including:

• An overview of the key changes, such as increased identity verification requirements, streamlined accounts filing options, and enhanced powers for Companies House to investigate and take action against non-compliance.
• A detailed breakdown of the potential impacts on small businesses, including increased compliance costs, reduced flexibility and having more information on public record.
• Practical advice on mitigating the effects of these reforms, from staying informed about new requirements and deadlines to exploring alternative business structures.
• Insight into additional proposed changes, like the creation of a new enforcement body and the introduction of new penalties for non-compliance.

How our guide will help you

With expert advice and easy-to-understand explanations, our guide will help you:

• Navigate the complexities of the UK Companies House reforms, ensuring you’re well-equipped to face the challenges ahead.
• Stay up to date with the latest developments in business regulation.
• Understand the potential impacts of the reforms on your company.
• Take proactive steps to mitigate the effects of the changes.
• Make informed decisions about your business structure and strategies.

You can download the guide below: 

Please do get in touch if you would like to discuss these reforms or if we can help you in any way.

Exam Success!

The Martlet Partnership is delighted to announce that our Paisley Thomson has smashed her ICAEW Professional Level Tax Compliance exam with an excellent mark of 68%!

Well done Paisley!

Exam Success

The Martlet Partnership is delighted to announce that our George Moyle has passed his Management Accounts exam in his Level 3 AAT (Accounting Technicians), smashing the pass mark with 75%.

He is also 21 today so what better birthday present?

Exam Success

The Martlet Partnership is delighted to announce and we send our full congratulations to our Rena Lourenço who registered 81% in her final exam for the AAT qualification and is now a fully qualified accounting technician.

Xero Beautiful Business Fund applications are open

We are writing to advise you that the leading accountancy software producers Xero have recently announced the launch of the Xero Beautiful Business Fund. It is their new initiative, backing small businesses for the future.

What does this mean?

Xero is offering more than NZ$750,000 (£352,500) in funding to Xero small business customers across Australia, Canada (excluding Quebec), New Zealand, Singapore, South Africa, the UK and the US. The Xero Beautiful Business Fund is open until 6^th October.

Applications for the fund are now open and we encourage you to apply.

About the fund

There are four funding categories, with no cap on how many you can enter.

• Innovating for sustainability

How are you taking the next step on your sustainability journey?

• Strengthening community connection

How are you striving to give back to your community?

• Trailblazing with technology

How are you seeking to innovate and set pace with technological advancements?

• Upskilling for the future

How are you thinking ahead and preparing for the future?

For each category you would like to enter, create a 90 second pitch video and complete the short online application form here.

Referrals

If you choose to enter, you will be asked if you have been referred by your accountant or bookkeeper. Please select yes and add the name of our firm and your primary contact.

Please spread the word.

Increased Disclosure Requirements for SMEs – Oh joy!

In an unexpected move, HMRC have announced that we effect from April 2025, there will be new rules on dividend disclosures for anyone involved with an owner managed business.

On their self-assessment tax return, you will need to split out the amount of dividend income received from your own companies and the percentage share you hold in those companies, and disclose dividend income from other sources separately.

Three years ago, during COVID, huge numbers of owners of small businesses were not eligible for grants because HMRC said they did not have sufficient information, namely regarding private company dividends. It would seem they are going to ask for it now and if they had done so earlier, a lot of people might have been in receipt of some Government help during those difficult times.

It is not exactly clear why HMRC need this level of information but there are a number of reasons why this may increase pressure on small business owners.

Also, from 2025/26, employers will have to report the number of hours worked by individual employees. We will have to see what this all means when the time comes but one thing will be clear. It is more administration and cost for small business owners.

Exam success!

The Martlet Partnership is delighted to announce that our Paisley Thomson received her exam results today, passing Financial Reporting with 64% and Audit and Assurance with a magnificent 75% in her ICAEW professional level exams.

We congratulate Paisley warmly on taking such a significant step on her pathway to professional qualification.

Interesting! Very interesting!

Everybody is aware that interest rates have risen almost month on month and are now the highest rates for many years.

This has an impact on taxation too.

HMRC have announced that from 11^th July, any tax paid late will attract an interest charge of 7.5%. this is relatively cheap for an unsecured loan but many taxpayers will not wish to pay this additional interest on their HMRC liabilities.

On the other hand, HMRC will pay 4% from 11^th July 2023 on tax repayments. This is going to be a better rate than most people can get from any financial institution and therefore, if you are aware of your tax liability and have sufficient funds, it may be a good idea to pay your corporation tax liability well ahead of the due date in order to exploit this excellent return.

Curiously, for employees (and especially directors), who have overdrawn loan accounts with their companies, the official rate of beneficial loan interest remains at 2.25%.

Finally, the House of Parliament debated on Monday whether to authorise an increase in the statutory mileage rate which has been at 45p per mile since 2012, notwithstanding the fact that the price of petrol has varied between £1 and £2 per litre during that time.

Unfortunately, the Members of Parliament decided to leave the rate still at 45p. We believe this is an opportunity lost. MPs say they will keep the approved Mileage Allowance Payment under review yet they have not changed it for 11 years!